Slotkin, Bird, Baruah on Michigan-Canada Economic Partnership

• Business leaders are voicing concerns about the Trump administration’s proposed tariff plans and are craving more predictability.
• The free trade quota between the U.S. and Canada is not being fully utilized.
• Without its international allies, a siloed U.S. cannot effectively combat China’s economic gains and power.

On March 17, 2025, Sen. Elissa Slotkin (D-MI), the Consul General of Canada in Detroit, Colin Bird, and Detroit Regional Chamber President and Chief Executive Officer Sandy K. Baruah discussed the vital economic relationship between Michigan and Canada, moderated by WJR’s Guy Gordon.

The conversation explored the mutual benefits of cross-border trade, the importance of strategic trade policies, and the interconnection between the two economies.

The conversation began with a temperature check from the various constituents that the panelists serve. On the business side, Baruah explained that business leaders were initially excited about the assumed business-forward policies with the new Trump administration but are now uneasy with the level of uncertainty as it disrupts their organizations’ forecasting.

“Even those business leaders who didn’t necessarily vote for President [Donald] Trump were frankly excited or at least looking forward to a less regulatory-intensive environment,” Baruah said. “Now what we’re hearing is it’s beginning to look a lot like COVID in the sense that business leaders are really struggling with a level of uncertainty that they were not expecting, not planning for.”

Slotkin brought points of view from the national security and statewide agricultural sectors, describing it as “angst in the system.”

“There’s more of an understanding of the national security implications of an intertwined trade relationship with China; I think where it changed drastically is with … Canada and Mexico because of our agreements,” Slotkin said. “And the farmers are very concerned. [During] the last time we went through this, they lost market share permanently to places like Brazil and Argentina for our soybeans.”

Later in the conversation, Bird expressed concerns about imposing Canadian tariffs, saying “that would cripple the auto sector” in Michigan based on the extremely integrated assembly between the two countries.

“People don’t realize the size of this … when you got 7,000 trucks every day crossing at [the Detroit-Windsor border], just how important that is, that we have an integrated economic space,” Bird said. “We are big fans of the American Project … the system of alliances, the breaking down of trade barriers … this region is disproportionately impacted, bar any other region in the United States, if that system starts to crumble.”

Slotkin also shared that during her short time in the U.S. Senate, she has already seen the effects from those who have powerful or more vocal influence.

“The thing I’m watching right now is that every industry that has a credible advocacy group … are calling and trying to get exceptions for their industry,” Slotkin said. “The first time Trump was in the White House, there was a process. What we have now is not a healthy system because the biggest, loudest people are going to get what they want … and the middle size and the small guys are going to get screwed in that process.”

The panelists also explored deficits and imbalances in both resources and employment opportunities for both Michigan and Canada. They agreed that there are not as many imbalances as some others may perceive. Bird spoke about the resources that each country supplies to each other, such as dairy, manufacturing, and hydroelectricity.

“Where you have actually very large U.S. surpluses is in manufacturing and goods. What makes the difference between a U.S. trade surplus and a trade deficit is the energy that comes into [Michigan],” said Bird. “Seventy percent of the feedstock into your [Midwest] refineries comes from Canada. It would be a couple of billion dollars per refinery [to convert] … so your only other option is Venezuela.”

Baruah mentioned the interchangeable job opportunities and warned that if the U.S. pushes away its allies with unreasonable tariffs, it will be tougher to combat China’s economic gains by ourselves.

“It’s really hard to do this alone. If there was a clear endgame that I, or the business leaders I represent, understood, I might be more sympathetic, but I’ve yet to see that.”